In the Western states, for example, millennials are most worried about being able to shore up enough for a down payment. That makes sense -- considering the region's average down payment amount tends to far exceed the national average.

Moving over to the Midwest however, millennials have misgivings for a much different reason: student loan debt. Experts suspect this is because salaries tend to be lower here, leaving student loan debt taking a greater chunk of the generation's take-home pay -- and making homeownership a more daunting challenge.

In the Northeast, Gen Y is most concerned with credit card debt, while Southern millennials actually shy away from homeownership for two reasons: concern about low credit scores, as well as simply not knowing where to start.

But not everyone is ditching the white-picket fence altogether. Despite their current low confidence, more than half of millennials surveyed said that they plan to buy a home within the next two years.